21 February 2025 - Shenhua's coal-based PP and PE Auction Results
Trading activity on the Shenhua Auction Platform remained stable despite persistent weakness in the futures market. The marginal increase of CNY 40/ton in LLDPE auction prices had minimal impact on overall transaction performance compared to the previous session.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 21 February 2025.
The following table shows the details of the auction results for prime grade only:
|
Product |
Auction Volume |
Deal Volume |
Auction Prices |
Deal Prices |
Deal % |
||
|
CNY/ton |
USD/ton |
CNY/ton |
USD/ton |
||||
|
Combined and reported by CommoPlast |
|||||||
|
Homo-PP |
1750 |
1560 |
7200 |
$880 |
7210-7410 |
$881-906 |
89.1% |
|
PPBC |
50 |
31 |
7600 |
$929 |
7600 |
$929 |
62.0% |
|
LLDPE |
550 |
500 |
8040 |
$983 |
8080-8110 |
$988-991 |
90.9% |
|
*Auction and Deal volumes are in tonnage *All USD equivalent prices only exclude the 13% value-added tax (VAT). They have not taken into account other costs that might incur in the selling process, i.e. import duty, customs clearances. |
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Trading activity on the Shenhua Auction Platform remained stable despite persistent weakness in the futures market. The marginal increase of CNY 40/ton in LLDPE auction prices had minimal impact on overall transaction performance compared to the previous session. Firm demand from the agricultural film sector, combined with restricted auction volumes, provided some support to pricing.
However, Chinese market participants continued to exercise caution in their procurement strategies, reflecting a broader hesitancy despite the looming supply constraints anticipated in the second quarter due to scheduled plant maintenance shutdowns. The market’s restrained response underscores prevailing uncertainty and a lack of strong bullish sentiment.
Background:
Shenhua Baotou Coal Chemical Co, the largest coal-based polyolefins producer in China, operates through four subsidiaries: Shenhua Xinjiang Coal-based New Materials Project, Shenhua Yulin Energy Co. Ltd., Shenhua Baotou Coal Chemical Co. Ltd., and Shenhua Ningxia Coal Industry Group (Ningmei).
The company boasts an annual production capacity of 2.65 million tons of PP, 750,000 tons of HDPE/LLDPE, and 570,000 tons of LDPE.
Active in spot trading, Shenhua Baotou also conducts daily auctions for its cargoes from 10 AM - 12 PM on its dedicated online platform, available at https://www.e-chnenergy.com.
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Written by: Kat Yun Yun
Edited by: Muhammad Hafiz